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Indian IT exports up 34 per cent news
Our Infotech Bureau
03 June 2005

Bangalore: IT exports from India grew 34.5 per cent to $17.2 billion in the year ending March 2005 on the back of a 44.5 per cent jump in business process outsourcing (BPO) exports, to $5.2 billion, nearly two thirds of which came from captive units of multinational firms.

Software exports alone grew 31 per cent to $12 billion while revenue from IT-enabled services rose 45 per cent to $5.2 billion.

According to Kiran Karnik, president Nasscom, the overall growth in IT exports beat Nasscom's own projections of export revenues of $22.5 billion, a growth of between 30 per cent and 32 per cent in the fiscal. Including the domestic IT, IT-enabled services (ITES) and BPO segments, the industry grew 32 per cent to $22 billion.

According to the Nasscom, Software services grew 30.5 per cent over the previous year to $12 billion.
Of the $12 billion IT services exports, between 30 per cent and 35 per cent came from captive units of foreign firms.

North America continued to be India's largest market, accounting for 68 per cent of the export revenues while Europe accounted for 24-25 per cent, of which more than half came from the UK. Asia Pacific contributed with 5 per cent, with the rest from other regions of the world.

The total software and BPO services exported from India was approximately 44 per cent of all such business offshored, Sunil Mehta, Nasscom's vice president said.

More than one million people were employed by the IT and ITES industry during the year. The software services sector directly employed about 6.97 lakh people, while the ITES industry employed about 3.48 lakh people at the end of last fiscal. It was estimated that the indirect employment created by the IT industry in areas such as catering, security and transport services stood at 2.5 million.

According to Karnik, "If we get government support that we need, we should be on track to meet the target of $50 billion in IT and ITES-BPO exports. To meet this target, the domestic market will have to show compounded annual growth of 30.7 per cent till fiscal 2009. Exports will have to grow 31.2 per cent and the industry, 31.1 per cent.

 


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Indian IT exports up 34 per cent